Due to the increasing sophistication of fraud, rule-based solutions are becoming ineffective. Data mining is an effective analytical method that has dramatically improved the detection and prevention of financial fraud. Integrating AI and ML algorithms into fraud detection systems raises both their precision and efficiency. These algorithms are constantly learning and adapting, giving them an advantage over fraudsters as they use new patterns and methods. Data mining is the process of sifting through massive datasets in search of interesting patterns, connections, and outliers.
